Drafting Sound Non-Compete Agreements

Whether you're a business in the process of hiring new employees or an individual considering taking a new position, a noncompetition or nonsolicitation agreement might be an appropriate step in the process.

Businesses often require new employees, and sometimes even current employees, to sign non-competition agreements. These contractual agreements affect the rights of both employers and employees, and go into effect after the employment relationship ends.

Typically these agreements aim to protect the business from investing time, training and other resources into an employee only to have that employee leave and start a competing business. In addition to protecting proprietary business trade secrets, noncompetition agreements also help to protect the business' customer base and ensure goodwill.

The law that governs these noncompetition agreements is complex, detail-oriented, and constantly evolving, but the general principles remain the same. In order for a noncompetition agreement to be valid, it generally must:

Protect a legitimate business interest

Be supported by legal consideration at the time of signing

Be reasonable in scope, time, and geography

Does your noncompetition agreement actually protect your business? Will the agreement you just signed really prevent you from taking a different job later? What kinds of agreements are enforced, and what are not? How are you ever supposed to know the difference?

Small businesses and start-ups are especially vulnerable to deficient contracts, so it's important to gain a clear understanding of the process at the onset by consulting with an experienced attorney who specializes in this area.

The attorneys at Slinde Nelson have been there before. We understand business and employment law, and we offer the experience and commitment to help you with your legal issues. If you have questions about employment noncompetition agreements, call our law firm at 1.866.601.9440 today, or contact us online.We offer free initial consultations at our law office in Portland, Oregon.

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